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funding corruption by this administration
Wednesday September 27, 11:58 am Eastern Time
Press Release
SOURCE: Office of U.S. Senator Peter G. Fitzgerald
Fitzgerald Panel Examines Waste, Fraud, and Abuse at USDA Ag Funds Used for Murals, Empty Lots and a $97 Million Vehicle
WASHINGTON, Sept. 27 /PRNewswire/ -- The U.S. Department of Agriculture, an agency responsible for managing a wide range of programs from children's nutrition to the National Forests, has an accounting system so outdated that it can't keep track of billions of dollars worth of assets, according to a number of audits reviewed in a Senate Agriculture subcommittee hearing Wednesday. U.S. Senator Peter G. Fitzgerald (R-IL), the chairman of the Agriculture subcommittee on Research, Nutrition, and General Legislation, called the findings ``disgraceful.''
``While our farmers struggle during these lean times of record low commodity prices, bureaucrats in Washington can't seem to keep track of billions of dollars of taxpayers' money,'' said Fitzgerald. ``This disgraceful lack of accountability is especially troubling because the USDA was warned to address some of these problems as long as a decade ago.''
Roger C. Viadero, the USDA's Inspector General, who recently released reports on the department's finances, told Fitzgerald's subcommittee Wednesday that the USDA's books are such a mess that at the beginning of this fiscal year its Fund Balance differed with the Treasury Department by $5 billion. Although subsequent efforts have reduced this difference, it still stands at more than $230 million, according to the Inspector General. For the last six years, USDA has not been able to account for many of its $118 billion in assets or the cost of its operations. The books and records of USDA have been so poorly maintained for almost 10 years that the USDA, as a whole, does not know how much money it needs to collect, how much money is currently collected, or the costs of its operations, he said.
``Every American family must balance their checkbooks and try to make ends meet, yet this agency manages to lose track of $5 billion,'' said Fitzgerald.
Although some of the audits were released earlier this year, this was the first comprehensive review of the IG's reports. According to an analysis of government performance reports by the Mercatus Center at George Mason University, the USDA was one of the worst agencies in the federal government, ranking 22 out of 24 federal agencies.
The lax fiscal management of the agency has led to some disturbing findings. According to the most recent IG report, funds intended for soil conservation programs have been shifted and used for items ``such as wall murals, transportation, and bringing civil lawsuits against owners of derelict properties'' in urban areas.
``I can't possibly conceive how painting abstract wall murals helps address America's soil erosion problem,'' said Fitzgerald.
Fitzgerald, who represents one of the nation's leading farm states, said the implications of the problems at the USDA reach beyond the agriculture sector of the economy. Many of the troubles have occurred in the USDA's nutrition programs. In a series of audits, the IG found that funds intended for feeding children at day care facilities under the Child and Adult Care Food Program were provided for addresses that turned out to be empty lots.
``Some of the primary duties of the USDA include helping feed hungry children and ensuring that the nation has an adequate and reasonably priced food supply,'' pointed out Fitzgerald. ``The responsibilities of this agency are far too important for us to tolerate financial mismanagement of this magnitude.''
Other record keeping entries indicate the department cannot substantiate whether its personal property records are accurate. For example, according to testimony by the Inspector General, a recent review of USDA records show a motor vehicle valued at $97 million and a microscope worth $11 million.
``According to this report, the USDA has a car valued at $97 million. That's one heck of a vehicle. They must've gotten all of the options,'' quipped Fitzgerald.
Fitzgerald said he was especially troubled that over the past ten years, the agency seemed to be ignoring federal management laws designed to prevent the kind of abuses that have occurred at the USDA.
In addition to the Inspector General, Sally Thompson, Chief Financial Officer of the USDA; Linda Calbon, Director of Financial Management and Assurance in the U.S. General Accounting Office; Thomas Schatz, the President of Citizens Against Government Waste; and Maurice P. McTigue, Distinguished Visiting Scholar at the Mercatus Center of George Mason University also testified.
Some of the most egregious examples
of waste fraud and abuse at the USDA
* The USDA's books are such a mess that at the beginning of this fiscal
year its Fund Balance differed with the Treasury Department by the
Treasury by $5 billion. Although, subsequent efforts have reduced this
difference, it still stands at more than $230 million.
* The USDA, as a whole, does not know 1) monies to be collected in total;
2) how much money is collected; or 3) the costs of its operations.
* A recent review of USDA records showed a motor vehicle was valued at
$97 million and indicated a microscope was worth $11 million.
* Funds intended for soil conservation programs have been shifted and
used for items "such as wall murals, transportation, and bringing civil
lawsuits against owners of derelict properties" in urban areas.
* The USFS can't keep track of major assets, including nearly $200
million of the total $1.75 billion in capitalized value.
* In a series of audits, the IG found that funds intended for feeding
children at day care facilities under the Child and Adult Care Food
Program were provided for addresses that turned out to be empty lots.
SOURCE: Office of U.S. Senator Peter G. Fitzgerald
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